China held a grand funeral for more than 400 Chinese soldiers killed fighting in the Korean War more than six decades ago, state media reported, as ties between the former ideological foes steadily improve.

North Korea warned Monday that the untended remains of US servicemen killed in the Korean War were being "carried away" by giant infrastructure projects and blamed Washington for suspending efforts for their recovery.

With the opening ceremony of the Incheon Asian Games just one week away, South Korea`s government issued a stern reminder to its citizens on Friday that they are banned from carrying the North Korean flag.

Deep-rooted feelings of guilt and regret have permeated Kim Se-Rin`s long life, but he hopes to excise them this week at an emotional, all-too-brief reunion with relatives he left behind in North Korea.

South Korea has rejected a demand by its northern neighbour to postpone this month`s military drills with the United States to avoid overlap with planned reunions of families separated during the Korean War, an official said.